Office of Public Sector Information
(This note is not part of the Regulations)
These Regulations make provision as to the application of the Corporation Tax Acts in relation to an insurance securitisation company..
Regulation 1 provides for citation, commencement and effect. Authority for the limited retrospective effect is given by section 84(5)(b) of the Finance Act 2005 (c. 7).
Regulation 2 provides for the interpretation of a number of terms used in the Regulations.
Regulation 3 sets out the scope and application of the Regulations.
Regulation 4 defines an “insurance securitisation company”.
Regulation 5 provides that these Regulations do not apply to an insurance securitisation company which has, or has had, an unallowable purpose.
Regulation 6 provides that for the purposes of the Corporation Tax Acts as they apply to an insurance securitisation company, generally accepted accounting practice shall be taken to be UK generally accepted accounting practice as it applied for a period of account ending on 31 December 2006 but excluding the application of Financial Reporting Standard 26 issued in December 2004 by the Accounting Standards Board.
Regulations 7 to 11 make provision for the application, modification and non-application of provisions of the Corporation Tax Acts 1988.
Regulation 8 makes provisions in relation to the Income and Corporation Taxes Act 1988. Paragraph (2) disapplies parts of section 209 of the Income and Corporation Taxes Act 1988 (meaning of distribution) so only dividend payments by a securitisation company constitute “distributions” for the purposes of the Corporation Tax Acts. Paragraph (3)excludes group relief provisions in relation to securitisation companies.
Regulation 9 disapplies certain provisions relating to transactions within groups in the Taxation of Chargeable Gains Act 1992.
Regulation 10 disapplies provisions in Schedule 9 to the Finance Act 1996 (loan relationships: special computational provisions).
Regulation 11 disapplies provisions in Schedule 26 to the Finance Act 2002 (derivative contracts: transactions within groups).
A full regulatory impact assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.
The Taxation of Insurance Securitisation Companies Regulations 2007